Scorpio Tankers (Buy, TP: USD30.00) - Offhire to affect 2020e
Scorpio Tankers has added 1,050 offhire days for H1 2020e, as the scrubber schedule has been affected by yard delays and coronavirus effects. Combined with the reduction in the fuel spread and Q1 guidance slightly below our estimates, we have thus reduced our 2020e EBITDA by 12%, and our EPS from USD4.39 to USD1.84. We now see asset values down 7% one-year forward (in line with our recent crude update), negatively affecting our one-year forward NAV. We reiterate our BUY, but have cut our target price to USD30 (38).
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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